Increased FDI to boost health insurance business

Apnainsurance Research Bureau

05 Nov 2008

Foreign
Direct Investment (FDI) is expected to boost the health insurance sector, which
is already registering a high growth rate. An Ernst & Young study estimates
that half of the Indian population is
expected to be covered by health
insurance in the next seven years.

The study estimates that the health insurance premium income is likely to touch
Rs 30,000 crore in 2015 from the existing Rs 4,000 crore.

Industry experts
say the government's proposal to scale up FDI in the insurance sector from 26 per
cent to 49 per cent will be a major booster for the business.

The
premium was Rs 670 crore in FY02.

The committee on health insurance has submitted
its report to insurance Regulatory and Development Authority (IRDA) suggesting with
reference to reduction in capital, transformation of health providers into
stakeholders in health insurance companies to prevent over-treatment and
encouragement of regional health insurance companies in comparision with pan-India
ones.

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